Welcome to NPI's very first passive income report. I've thought about the pros & cons of having this transparency and decided to give it a try and see how well it's received. So, do let me know what you think about these monthly income reports - do they help you in any way at all? Hopefully by sharing my numbers and income sources will motivate you to get started on building your own multiple streams of passive income online.
Disclaimer: The income sources I report here are results of hard work I've put in the past. I will do my best to track the number of hours of work I've put into building each income stream so you can gauge for yourself whether an income source is "worth" going after. Also, unlike other passive income blogs who share their financials, I will make it very clear what incomes are truly passive, and what incomes are actively earned. Lastly, if you are financially strapped, have trouble making rent this month, then I do not recommend building passive income online because it takes time for it to come to fruition. My best advice for you is to go find work, and find it fast, get some active income coming in first.
August 2013 Income
Google Adsense: $45.62
Domain Parking Revenue
Total Income: $580.36
August 2013 Expense
Total Expense: ($348.32)
August 2013 Net Profit/Loss: $232.04
Here I will give you a breakdown and background about each of the income/expense items.
Google Adsense $45.62
If you've been in the internet marketing space for a while, I'm sure you've jumped on this bandwagon trying to strike it rich with this program. Essentially Google came up with this giant ad network where they broker ad space from webmasters and publishers and sell them to advertisers. If you have a blog, or simple website, you can sign up with Google Adsense program and you'll be provided a code that you can place on your site, and Google will come and sniff the text on your site and display ads that are relevant to your site. Advertisers bid on keywords they want to buy, and publishers get a portion of their bid, and Google pockets the rest. Pretty clever, right? I think so.
At the beginning of Adsense program, they didn't have algorithm to detect "click" quality so it was very easy to make bank with it. I remember setting up really simple one-page sites targeting real estate keywords (and they pay huge, a few bucks per click) and just drive massive amount of traffic from Craigslist (which you don't have to pay to post ads). Yahoo! followed suit of Google and started their own YPN (Yahoo! Publisher Network) program. We also milked YPN to the tune of $2k per day - it didn't last long, though, before they kicked us out of the program for having "poor" quality traffic.
Fast forward to 2013, there are only a handful of sites that I run that have organic search engine traffic. Traffic volume is not huge, but in August it did $45.62 which I have no complaints about having this extra passive money.
Do I still like Google Adsense? Yes, and I do plan to make more niche sites and monetize it with this program. More on that in my next post.
TextLinkAds (TLA) is another ad network where advertisers pay for contextual link ads. For example, if on your webpage you mention the word "Halloween costume" and as a company selling Halloween costumes I can pay you to have that keyword phrase linked back to my company site. TLA basically brokers such ad type (they have many more ad types now). I use TLA for a movie review blog I run. I will talk more about this movie review site in a future post.
DomainSponsor & Voodoo $90.98
If you don't have a domain name, you MUST absolutely look into investing domain names (Have you secured YourName.com yet?). You can earn from monetizing type-in, or existing traffic to a domain name (domain parking), or from buying & selling domain names (flipping domain names).
Let's talk about type-in traffic. Have you ever misspelled or mistyped a domain name and it led to another page with a bunch of ads on them? That's domain parking - you buy a domain name that is keyword based, or a misspelled version of the "real" site people go to (be very careful about this because you can be accused of domain squatting or trademark infringement) and you monetize with ads as people land on your domain name.
The $90.98 domain parking revenue is all passive, requires no time or effort on my part. I will reveal that majority of the revenue comes from 2 category killer domain names I've invested a few years back: Board.org and Boards.org. The names themselves deserve at least a 5-figure price tag if not more, depending on who the end-user is. So the fact that there are traffic going to them is really icing on the cake.
Domain flipping is an active income type, where you have to put in time and effort to buy & sell domain names. You can definitely make a lot of money from flipping domains - I just flipped a domain name I purchased for $100 to an end-user for $2,000 two weeks ago. I've flipped expire domain names, turn $10 to $1,000. Turned a $1,000 domain name to another domainer for $2,000 in less than 1 month after I purchased it. There are many other flips I've done which I can elaborate in future posts, but the advice here is, DO NOT ignore domain names as a viable investment portfolio, or online business. There are people who make millions in the domain name business.
Currently I own about 200+ domain names and depending on when they expired, in August the registration fees (about $10/year for each domain name) came down to ($163.72).
Okay, let's go over some affiliate revenue streams.
At one point I had close to 1,000 domain names and it forced me to look into cheap bulk domain registration services. I end up getting a Godaddy Reseller account to reduce my own registration cost, and I set up a site to teach people how to start a blog. Well, when you are setting up a blog (not the free ones you get from Google or WordPress), you obviously need to buy a domain name and web hosting - this gives me the opportunity to plug my own reseller shop (WholesalerDomains.com $249.63) into the tutorial. For a while I was ranked on the 1st page of Google (I love SEO and can tell you more about it in future posts) for the phrase "how to start a blog" and quite a few people followed tutorial and started their own blog.
Besides domain name, web hosting, people may also want to buy blog themes (that's ElegantThemes $171.98) to go with it. Do you think they will go on and buy other products or services which I haven't mentioned? You bet - the sales funnel only grows deeper from here.
For those of you who have made it thus far reading, my advice to you is look into your passion, your specialty or knowledge about a particular hobby or topic because you, too, can set up simple sites or blogs teaching people "how to's" and earn money from it. When you've put something valuable and good out there, people will share with their friends & family, other webmasters will link back to you - they become your traffic source and when it reaches a tipping point it will become viral and perpetual... really powerful stuff.
One way of keeping in touch with your site visitors is to capture their emails, and that's where email marketing service comes in (Aweber $14.70). You might have noticed when you visit some websites they will pop up a form and ask you to put in your name & email address to be notified of new blogs, promotions, or for a free gift/download or whatnot. What these webmasters are doing is building their mailing list, so that even when you are done visiting their sites, they have a way (via email) of bringing you back to the site, or to promote a product/service to you. Email marketing is not cheap, but when done right, can be very lucrative. I personally have amassed a mailing list of 70k people from various websites, but haven't really capitalized on that. It ends up costing me a lot of monthly fee to Aweber ($69.65).
Web hosting fees, of course, is an inevitable expense when doing business online. These are LiquidWeb ($75.00) and Hostgator ($24.95). I also do have a Site5 hosting account that I pay annual for better rate, which costs ($191.40) each year.
Lastly, I've been buying content from BestQualityPLR ($15.00)... they are just collecting digital dust right now - I will need to make better use of this product. Right now it's just money down the drain.
That just about sums up my passive income/expense streams for August 2013 and I look forward to increasing my bottom line in the next months. I have several case studies (Get out of debt Kindle book, how to set up an e-commerce site) I need to complete and hopefully they will bring more income in.
By the way, some of you may be thinking - all that hard work just for a measly $232.04 net profit? Do not let that be the excuse for you for not building your own passive income empire because:
1) I spread myself way too thin by doing way too many stuff - I have way too many domain names and way too many sites/blogs. You should focus on building up one site/blog at a time, and maximize the income stream from that, before moving on,
2) You will most likely do a better job than me. I've seen plenty of inexperienced people make more money than me, and that's you!
I'll be showing you how to start a niche website from scratch, have it ranked in the search engines, and make money from the traffic. You do not want to miss this. Building passive income don't have to hard, you just copy what works!